Balearia pledges to restore daily Morro Jable–Las Palmas service

Balearia is now the owner of Naviera Armas Trasmediterránea together with a group of Canary Island companies and investors, guaranteeing at least a 30 % local ownership of the carrier.

The National Commission for Markets and Competition (CNMC) has given its approval to the acquisition in the Canary Islands, stating that there are no signs of concentration in regular maritime transport of roll‑on/roll‑off cargo and passengers between the islands and from the Peninsula to the Canaries, according to Espiral 21.

The CNMC, which depends on the Ministry of Economy, had previously identified competition risks that required commitments from the buyer. After a second‑phase investigation, the regulator concluded that the commitments presented by Balearia for the Canary Islands “are adequate, sufficient and proportionate to resolve the competition issues that this purchase could generate.”

The authorization is not yet final. It will be forwarded to the Minister of Economy, Trade and Business, who will decide whether to submit it to the Council of Ministers, which may assess the operation on broader public‑interest grounds beyond competition protection.

Commitments Proposed by Balearia

Balearia has offered a series of pledges that the CNMC considers sufficient to address competition concerns arising from the purchase:

• Dissolve the joint venture with Fred Olsen that operated the Huelva‑Canary Islands route.
• No horizontal agreements with any other carrier that would replicate the terms of the former Huelva‑Canary Islands arrangement.
• Maintain current capacity and frequencies on the Peninsula‑Canary Islands route that exceed the levels stipulated in the OSP (Obligations of Service Provision).
• Invest €25 million over three years to upgrade the fleet acquired from Armas.
• Enhance user experience through measures such as advanced onboard internet connectivity, improved reservation and boarding processes, expanded onboard entertainment, and regular performance monitoring using objective KPI indicators.
• Guarantee environmental sustainability and energy transition by aligning the acquired fleet with Balearia’s standards.
• Strengthen corporate culture by implementing an internal compliance program focused on competition law.
• Boost inter‑island competition by reactivating the Morro Jable‑Las Palmas maritime route that Armas had discontinued.
• Invest locally, committing to retain the entire workforce acquired from Armas and to keep the Spanish flag on the vessels.
• Monitor pricing levels applied by Balearia.

These commitments have a general duration of three years, during which the CNMC will supervise compliance. Balearia must also report to the CNMC within the agreed timelines.

Canary Capital

The permission granted to Balearia, owned by Valencian entrepreneur Adolfo Utor, will enable a consortium of island investors to acquire a shareholding that includes at least 30 % of the company’s stock, an operation valued at roughly €25 million.

Utor has been negotiating for more than a year with Canary companies through the firm Socios Inversores Canarios, which has a capital base of €100,000 and includes participants such as Positivo Expansión, Dinosol, Alisios Canarias Inversiones, Acosta Matos, and Fund Grube.